I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking AlphaAnalyst’s Disclosure: I/we have a beneficial long position in the shares of ET, EPD, KM ...

Two of the biggest winners in the midstream space over the past three years have been Energy Transfer (NYSE: ET ) and Williams Companies (NYSE: WMB ). Neither of these stocks generates much hype in the broader financial media, but theyIf you want access to our Portfolios that have crushed the market since inception and all our current Top Picks, join us for a 2-week free trial at High Yield Investor.We are the fastest growing high yield-seeking investment service on Seeking Alpha with a perfect 5/5 rating f ...

Retirement is complicated and you only get once chance to do it right. Don't miss out because you didn't know what was out there.The Retirement Forum provides actionable ideals, a high-yield safe retirement portfolio, and macroeconomic outlooks, all to help you maximize your capital and your income. We search the entire market to help you maximize returns.Energy Transfer (NYSE: ET ) is one of the largest midstream companies, with a market capitalization of just under $60 billion. The company is one we recom ...

Core Viewpoint - Energy Transfer is well-positioned for future growth, with a favorable regulatory environment and increasing energy demands, particularly from AI and data centers [2][10]. Financial Performance - Energy Transfer reported a solid Q3 with adjusted EBITDA rising to $3.96 billion and distributable cash flow (DCF) to partners increasing by $4 million to $1.99 billion [3]. - The company paid out $1.1 billion in distributions, resulting in a distribution coverage ratio of 1.8 times, with $890 million in excess cash flow after distributions [5]. - The per-share distribution was increased by 3.2% year-over-year to $0.3225, yielding approximately 7.4% [4]. Growth Opportunities - The company anticipates full-year EBITDA guidance of $15.3 billion to $15.5 billion, up from initial guidance of $14.5 billion to $14.8 billion, with potential upside from optimization efforts [6]. - Energy Transfer has lowered its growth capital expenditures estimate for the year to between $2.8 billion and $3 billion, while discussing a future run rate of $2.5 billion to $3.5 billion [7]. - The company is experiencing increasing power needs across its pipelines, driven by AI and data centers, with requests to connect to approximately 45 power plants and over 40 prospective data centers [8]. Regulatory Environment - Co-CEO Marshall McCrea expressed optimism about the Trump administration easing regulations, which could benefit LNG export projects [9]. Valuation - The stock trades at an attractive enterprise value (EV)-to-EBITDA multiple of 8.3 times, significantly below pre-COVID-19 levels and the average multiple of 13.7 for midstream MLPs from 2011 to 2016 [11][12]. - Given its valuation, attractive yield, growth opportunities, and improved regulatory environment, Energy Transfer is considered a buy [12].

Group 1 - Energy Transfer (NYSE: ET) reported strong Q3 earnings with growth across all categories [1] - The most notable performance was in the oil segment, while NGL and natural gas volumes showed more muted growth [1]

Group 1 - The article highlights Energy Transfer (NYSE: ET) as a top pick in the US midstream sector due to its solid business fundamentals and sector-leading dividend yield [1]

Core Insights - Energy Transfer LP (NYSE: ET) has shown a stock growth of approximately 7%, closely aligning with the performance of the S&P 500 [1] Company Performance - The company released its Q3 report, indicating positive financial performance [1] Investment Strategy - The analysis emphasizes a focus on high-quality companies with reasonable valuations rather than seeking deep discounts, which may indicate underlying issues [1] - The investor's approach combines a growth mindset with a balanced portfolio that includes low-volatility dividend-paying stocks [1]

Core Viewpoint - Energy Transfer is experiencing significant growth through acquisitions and expansion initiatives, leading to record volumes and earnings growth. Group 1: Acquisitions and Expansion - Energy Transfer has completed a $3.1 billion acquisition of WTG Midstream and a $7.1 billion merger with Crestwood Equity Partners, contributing to its growth strategy [1][4] - The company is actively investing in organic expansion, with a pipeline of projects expected to enhance its operations [2][9] Group 2: Volume and Earnings Growth - The third quarter saw record-setting volume growth across various segments, including a 25% increase in crude oil transportation and a 49% rise in crude oil export volume [3][5] - Energy Transfer generated nearly $4 billion in EBITDA, marking a nearly 12% increase year-over-year, while distributable cash flow remained stable at about $2 billion [5][6] Group 3: Financial Flexibility and Future Growth - The company maintains a high-yielding distribution of nearly 7.5%, with $1.1 billion paid in distributions and approximately $900 million in excess free cash flow [6][11] - Energy Transfer plans to invest between $2.8 billion and $3 billion in growth capital projects this year, with ongoing projects expected to come online through 2026 [9][10] Group 4: Strategic Projects - Recent expansions include the Orla East processing plant and a new crude oil pipeline, which are anticipated to boost volume and cash flow [8][9] - Proposed projects such as the Lake Charles LNG terminal and carbon capture initiatives are in development, further enhancing the company's growth outlook [10]

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) This section presents the unaudited consolidated financial statements for Energy Transfer LP, detailing financial position, operational results, and cash flows for the period ended September 30, 2024 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $124.4 billion, driven by increased Property, Plant, and Equipment, while liabilities rose due to higher long-term debt Consolidated Balance Sheet Highlights (in millions) | Account | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$124,429** | **$113,698** | | Total Current Assets | $13,336 | $12,433 | | Property, Plant, and Equipment, net | $95,012 | $85,351 | | **Total Liabilities** | **$77,811** | **$64,981** | | Total Current Liabilities | $12,371 | $11,277 | | Long-term Debt, less current maturities | $58,995 | $51,380 | | **Total Equity** | **$46,180** | **$43,939** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Revenues and net income attributable to partners increased significantly for the nine months ended September 30, 2024, compared to the prior year Statement of Operations Summary (in millions, except per unit data) | Metric | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Total Revenues | $63,130 | $58,054 | | Operating Income | $6,859 | $6,130 | | Net Income | $5,118 | $3,727 | | Net Income Attributable to Partners | $3,737 | $2,608 | | Diluted Net Income per Common Unit | $0.99 | $0.72 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased, while investing activities cash use grew due to acquisitions, and financing activities reflected debt and equity transactions Cash Flow Summary (in millions) | Activity | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $8,916 | $8,259 | | Net Cash Used in Investing Activities | ($4,435) | ($3,361) | | Net Cash Used in Financing Activities | ($4,343) | ($4,641) | | **Increase in Cash and Cash Equivalents** | **$138** | **$257** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, major acquisitions like WTG Midstream, debt refinancing, and segment performance [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=46&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses strategic acquisitions, operational results showing significant Adjusted EBITDA growth, liquidity, and capital expenditure plans for 2024 [Recent Developments](index=46&type=section&id=Recent%20Developments) The company completed major acquisitions of WTG Midstream and NuStar, formed a Permian joint venture, and increased its quarterly distribution - Completed the acquisition of **WTG Midstream** for **$2.28 billion in cash** and approximately **50.8 million ET common units**, adding 6,000 miles of gas gathering pipelines and 1.3 Bcf/d of processing capacity in the Midland Basin[205](index=205&type=chunk)[206](index=206&type=chunk) - Subsidiary Sunoco LP completed its acquisition of **NuStar Energy L.P.**, adding approximately **9,500 miles of pipeline** and 63 terminal and storage facilities[207](index=207&type=chunk) - Formed a joint venture with Sunoco LP, combining their respective crude oil and produced water gathering assets in the Permian Basin, with Energy Transfer holding a **67.5% interest**[212](index=212&type=chunk)[213](index=213&type=chunk) - Announced a quarterly cash distribution of **$0.3225 per common unit** for the quarter ended September 30, 2024, an annualized rate of $1.29[214](index=214&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) Consolidated Adjusted EBITDA grew by $1.5 billion to $11.6 billion, propelled by acquisitions and volume growth across key segments Consolidated Adjusted EBITDA by Segment (in millions) | Segment | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | Change | | :--- | :--- | :--- | :--- | | Intrastate transportation and storage | $1,095 | $869 | $226 | | Interstate transportation and storage | $1,335 | $1,468 | ($133) | | Midstream | $2,205 | $1,851 | $354 | | NGL and refined products | $3,071 | $2,852 | $219 | | Crude oil transportation and services | $2,417 | $1,906 | $511 | | Investment in Sunoco LP | $1,018 | $728 | $290 | | Investment in USAC | $429 | $373 | $56 | | **Total Adjusted EBITDA** | **$11,599** | **$10,096** | **$1,503** | - Net income for the nine months ended Sep 30, 2024, **increased by $1.39 billion** year-over-year, primarily due to a **$598 million gain** on Sunoco LP's sale of West Texas assets and the absence of a $625 million litigation loss recorded in the prior year[235](index=235&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) The company projects up to $4.0 billion in 2024 capital expenditures and maintains significant borrowing capacity under its credit facility 2024 Expected Capital Expenditures (in millions) | Category | Low Estimate | High Estimate | | :--- | :--- | :--- | | Growth Capital | $2,800 | $3,000 | | Maintenance Capital | $970 | $1,000 | | **Total** | **$3,770** | **$4,000** | - As of September 30, 2024, the Partnership had **$1.63 billion of borrowings outstanding** under its $5.0 billion Five-Year Credit Facility, with **$3.34 billion available** for future borrowings[317](index=317&type=chunk) - Total consolidated debt **increased to $59.3 billion** as of September 30, 2024, from $52.4 billion at December 31, 2023, primarily to fund acquisitions and capital projects[305](index=305&type=chunk) [Cash Distributions](index=71&type=section&id=Cash%20Distributions) Energy Transfer announced a continued sequential increase in its quarterly common unit distribution for Q3 2024, alongside distributions for preferred units Energy Transfer Common Unit Distributions per Unit | Quarter Ended | Payment Date | Rate | | :--- | :--- | :--- | | Dec 31, 2023 | Feb 20, 2024 | $0.3150 | | Mar 31, 2024 | May 20, 2024 | $0.3175 | | Jun 30, 2024 | Aug 19, 2024 | $0.3200 | | Sep 30, 2024 | Nov 19, 2024 | $0.3225 | [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=76&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages commodity price risk through derivatives and is exposed to interest rate risk on its $3.09 billion of floating rate debt - The company utilizes exchange-traded and OTC commodity financial instruments (futures, swaps, options) to manage volatility in commodity prices[174](index=174&type=chunk) - As of September 30, 2024, the company had **$3.09 billion of floating rate debt**, where a hypothetical 100 basis point change in interest rates would change annual interest expense by approximately **$31 million**[340](index=340&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=77&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the third quarter of 2024 - Based on an evaluation, the Co-Principal Executive Officers and Principal Financial Officer concluded that **disclosure controls and procedures were effective** as of September 30, 2024[343](index=343&type=chunk) - **No material changes** were made to the company's internal control over financial reporting during the three months ended September 30, 2024[344](index=344&type=chunk) [PART II — OTHER INFORMATION](index=78&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=78&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section details updates on legal matters, including the resolution of a case related to a 2014 oil release and a challenge to a new PHMSA penalty - A Consent Decree was entered in September 2024 to resolve a civil penalty and natural resource damages claim from a 2014 crude oil release, with payments totaling approximately **$2.5 million**[348](index=348&type=chunk) - The Partnership is challenging a Notice of Probable Violation from PHMSA related to a 2020 incident, which includes a proposed civil penalty of approximately **$2.5 million**[350](index=350&type=chunk) [ITEM 1A. RISK FACTORS](index=78&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's 2023 Annual Report and Q1 2024 Quarterly Report - **No material changes** from the risk factors described in the Annual Report on Form 10-K for the year ended December 31, 2023, and the Q1 2024 Form 10-Q have occurred[353](index=353&type=chunk) [ITEM 6. EXHIBITS](index=79&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the report, including Sarbanes-Oxley certifications and interactive data files

Financial Data and Key Metrics Changes - For Q3 2024, adjusted EBITDA was $3.96 billion, up from $3.54 billion in Q3 2023, indicating strong operational performance [6] - DCF attributable to partners was $1.99 billion, consistent with the same quarter last year [7] - The company spent approximately $1.7 billion on organic growth capital in the first nine months of 2024 [7] Segment Performance Changes - NGL and Refined Products segment adjusted EBITDA was $1.01 billion, down from $1.08 billion in Q3 2023, primarily due to lower gains from hedged NGL inventory [8] - Midstream segment adjusted EBITDA increased to $816 million from $631 million year-over-year, driven by higher volumes in the Permian Basin and Eagleford [9] - Crude Oil segment adjusted EBITDA rose to $768 million from $706 million, supported by record transportation throughput and a 49% increase in crude oil exports [10] - Interstate Natural Gas segment adjusted EBITDA decreased to $460 million from $491 million, affected by lower IT utilization due to lower gas prices [11] - Intrastate Natural Gas segment adjusted EBITDA increased to $329 million from $244 million, mainly due to increased pipeline optimization gains [12] Market Data and Key Metrics Changes - The company is experiencing significant demand for natural gas, particularly from AI datacenters and power plants, with requests to connect to approximately 45 power plants and over 40 prospective datacenters [21][23] - The anticipated rise in natural gas demand is expected to benefit the company due to its extensive pipeline network [28] Company Strategy and Industry Competition - The company is focusing on organic growth capital expenditures of approximately $2.9 billion for 2024, primarily in NGL and Refined Products and Midstream segments [16] - Recent acquisitions, including WTG, are expected to enhance operations and create synergies [13][14] - The company is well-positioned to capitalize on the growing demand for natural gas, particularly in Texas and the Midwest [22][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong demand for natural gas and the company's ability to meet this demand through its infrastructure [21][28] - The company maintains a strong liquidity position and is focused on funding organic growth opportunities while reducing leverage [29] Other Important Information - The company is progressing on several growth projects, including expansions in NGL export capacity and processing facilities in the Permian Basin [16][18] - The company expects to maintain adjusted EBITDA guidance for 2024 between $15.3 billion and $15.5 billion [27] Q&A Session Summary Question: Impact of new demand from datacenters and power plants - Management highlighted the significant opportunities arising from the demand for natural gas due to the growth of datacenters and power plants, emphasizing their strategic positioning to capitalize on this trend [32][34] Question: Status of South Mississippi pipeline and growth CapEx outlook - Management noted the high demand for natural gas on the East Coast and expressed excitement about the potential growth opportunities from the South Mississippi pipeline project [38] Question: Update on WTG acquisition and SUN joint venture - Management reported positive integration progress with WTG and highlighted the benefits of the SUN joint venture, which enhances their presence in the Permian Basin [45][46] Question: Competitive dynamics and returns on new projects - Management stated that they maintain their return hurdles across all projects and are confident in achieving favorable returns from new opportunities, particularly in Texas [50] Question: Guidance for Q4 and potential headwinds - Management indicated no significant headwinds for Q4, maintaining a conservative outlook while acknowledging potential optimization opportunities [56] Question: Future processing capacity announcements - Management confirmed ongoing projects and expansions in processing capacity, emphasizing their focus on meeting future demand from the Permian Basin [61] Question: Update on Sabina pipeline project - Management provided an update on the Sabina pipeline, indicating excitement about its potential and expected revenues starting in Q1 of next year [68]